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Why is this wrong I need help? On January 1, 2018, Surreal Manufacturing issued 640 bonds, each with a face value of $1,000, a stated
Why is this wrong I need help?
On January 1, 2018, Surreal Manufacturing issued 640 bonds, each with a face value of $1,000, a stated interest rate of 3 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 4 percent, so the total proceeds from the bond issue were $622,242. Surreal uses the simplified effective interest bond amortization method and adjusts for any rounding errors when recording interest in the final year. Required: 1. Prepare a bond amortization schedule. 2-5. Prepare the journal entries to record the bond issue, the interest payments on December 31, 2018 and 2019, the interest and face value payment on December 31, 2020 and the bond retirement. Assume the bonds are retired on January 1, 2020, at a price of 102. X Answer is not complete. Complete this question by entering your answers in the tabs below. Req1 Req 2 to 5 Prepare the journal entries to record the bond issue, the interest payments on December 31, 2018 and 2019, the interest and face value payment on December 31, 2020 and the bond retirement. Assume the bonds are retired on January 1, 2020, at a price of 102. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest whole dollar.) Show less No Date General Journal Credit Jan 01, 2018 Debit 622,242 17,758 % Discount on Bonds Payable Bonds Payable, Net 640,000 Dec 31, 2018 24,890 Interest Expense Cash Discount on Bonds Payable 19,200 5,690 3 Dec 31, 2019 25,117 Interest Expense Cash Discount on Bonds Payable 19.200 5,917 Dec 31, 2020 25,351 Interest Expense Cash Discount on Bonds Payable 19,200 X 6,151 X Jan 01, 2020 640,000 $ 18,951 Bonds Payable, Net Loss on Bond Retirement Cash Discount on Bonds Payable 652,800 6,151Step by Step Solution
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